Spotting Winners: Wabash (NYSE:WNC) And Heavy Transportation Equipment Stocks In Q3

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the heavy transportation equipment industry, including Wabash (NYSE:WNC) and its peers.

Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.

The 13 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1%.

In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.

Weakest Q3: Wabash (NYSE:WNC)

With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Wabash reported revenues of $381.6 million, down 17.8% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.

Wabash delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 3.8% since reporting and currently trades at $8.63.

Read our full report on Wabash here, it’s free for active Edge members.

Best Q3: REV Group (NYSE:REVG)

Offering the first full-electric North American fire truck, REV (NYSE:REVG) manufactures and sells specialty vehicles.

REV Group reported revenues of $664.4 million, up 11.1% year on year, outperforming analysts’ expectations by 4.5%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 10.4% since reporting. It currently trades at $61.42.

Is now the time to buy REV Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Commercial Vehicle Group (NASDAQ:CVGI)

Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.

Commercial Vehicle Group reported revenues of $152.5 million, down 11.2% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 5% since the results and currently trades at $1.44.

Read our full analysis of Commercial Vehicle Group’s results here.

Blue Bird (NASDAQ:BLBD)

With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.

Blue Bird reported revenues of $409.4 million, up 16.9% year on year. This number topped analysts’ expectations by 7.7%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Blue Bird achieved the biggest analyst estimates beat among its peers. The stock is down 7.7% since reporting and currently trades at $50.65.

Read our full, actionable report on Blue Bird here, it’s free for active Edge members.

Greenbrier (NYSE:GBX)

Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.

Greenbrier reported revenues of $759.5 million, down 27.9% year on year. This print came in 0.6% below analysts' expectations. Overall, it was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Greenbrier delivered the highest full-year guidance raise among its peers. The stock is up 2.8% since reporting and currently trades at $46.52.

Read our full, actionable report on Greenbrier here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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